Georg Brameshuber, a crypto advisor, has raised concerns about the lack of clear oversight in decentralized finance (DeFi), despite its status as a significant financial innovation. He questioned whether the industry could propose a self-regulation framework to ensure safer growth. Brameshuber made these remarks in a March 9 post on X.
"Focussed on whether DeFi Can Propose a Self-Regulation to Safely Foster," said Brameshuber, crypto advisor and co-founder. "'A Self-Regulation Proposal for the Industry.' DeFi is the most exciting financial innovation of the century, but it still lacks clear oversight."
According to Cointelegraph, Congress recently repealed the Internal Revenue Service (IRS) broker rule for DeFi platforms, altering reporting obligations amid ongoing regulatory discussions. On March 12, the House voted to nullify a rule that required DeFi protocols to report crypto sales and taxpayer details to the IRS, which was initially set for implementation in 2027. The White House supported this repeal. Industry groups argued that such requirements could affect user privacy and drive DeFi operations offshore. Experts noted compliance challenges due to decentralization. While the repeal prevents immediate implementation, regulatory uncertainty persists as Congress considers broader cryptocurrency legislation, including FIT 21, which may exempt DeFi from oversight by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
Georg Brameshuber's post
| X
The European Banking Authority (EBA) and European Securities and Markets Authority (ESMA) report indicates that DeFi constitutes 4% of the global crypto-asset market. While EU adoption surpasses the global average, it lags behind countries like the United States and South Korea. The report highlights a correlation between DeFi hacks, stolen assets, and market size. It also identifies risks of money laundering and terrorist financing linked to decentralized exchange flows, which account for 10% of global spot crypto trading volumes.
According to Investopedia, DeFi is a blockchain-based financial system that eliminates traditional intermediaries such as banks. It allows users to lend, borrow, and trade through automated smart contracts on decentralized networks. This enables peer-to-peer transactions with increased accessibility, transparency, lower fees, and faster processing times compared to traditional finance systems. DeFi platforms utilize blockchain technology to record transactions on public ledgers, reducing reliance on centralized oversight. However, regulatory uncertainty remains as governments and financial authorities continue evaluating how DeFi fits within existing legal frameworks.
Brameshuber is co-founder of Validvent and serves as a board member of the Digital Asset Association Austria (DAAA). He is also a certified tax advisor and Web3 entrepreneur with five years of experience researching and teaching crypto economics at the University of Vienna. According to his LinkedIn page, Brameshuber offers crypto tax advisory services and consulting for Web3 startups.
